After a two-month decline, California pending home sales in October posted higher gains than the previous month, but were down from the previous year, the California Association of REALTORS® (C.A.R.) reported this week. Meanwhile, the level of distressed sales remain low, with San Mateo and Santa Clara counties having the lowest share.
Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market. According to C.A.R.'s Pending Home Sales, statewide pending home sales rose 2.5 percent in October to 109.3, up from 106.7 in September, based on signed contracts. The monthly increase was considerably greater than the average September-to-October change of 0.7 percent over the past five years. Pending sales were down 9.9 percent from the 121.2 index recorded in October 2012.
C.A.R.'s sales data shows the share of non-distressed or equity sales dipped slightly in October, but made up more than eight in 10 sales. The share of equity sales in October dipped to 85.5 percent, down from 85.7 percent in September. October marked the fourth straight month that equity sales have been more than 80 percent of total sales. Equity sales made up 63.2 percent of sales in October 2012.
The combined share of all distressed property sales rose slightly in October to 14.5 percent, up from 14.3 percent in September, but down sharply from 36.8 percent in October 2012. Of 16 of the 38 reported counties showed a month-to-month decrease in the share of distressed sales, with San Mateo County having the lowest share, followed by Santa Clara County.
The share of distressed sales as a portion of total home sales in San Mateo County was at 3 percent in October, down from 4 percent in September and down from 17 percent the previous year. The share of distressed sales in Santa Clara County was at 4 percent in the months of October and September, down from 22 percent in October 2012.
Recent data from ForeclosureRadar presented by C.A.R. Vice President and Chief Economist Leslie Appleton-Young to members of the Silicon Valley Association of REALTORS® showed as of October 2, 2013, Santa Clara County had 583 properties on pre-foreclosure, 535 on auction, and 84 bank-owned properties (REOs). In San Mateo County, there were 227 properties at the pre-foreclosure stage, 268 on auction and 33 bank-owned properties.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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